Lincoln's rental calendar runs on the university. Properties near campus that close in May can be leased for August; the same property closed in September may sit half empty until next year.
In short: LendingStreet makes residential investor bridge loans on 1-8 unit properties in Lincoln and across Nebraska. Loans run from $150,000 to $5M+ with rates from 7.99%, close in as little as 10 days, and some bridge programs need no appraisal. They are short-term and interest-only, with an exit by sale or by refinancing into a DSCR loan once the property is leased.
Many of the best small rentals near City Campus and East Campus change hands in late winter and spring, when owners decide whether to sign another year of leases. Buyers who can close quickly can lease the property for the coming school year. Families and hospital workers move more in summer. Either way, missing the window can cost months of rent.
Other bridge deals come from estates that heirs want settled, long-time landlords retiring from a handful of houses, and investors whose short-term loans or community bank notes are coming due. In each case, the seller or the borrower values certainty and speed over squeezing out the last dollar.
A bridge loan also helps when a conventional or bank loan cannot close on time. Community banks in Nebraska often want to see a property stabilized before they lend, and a vacant or partly leased building near campus may not qualify yet. Short-term bridge financing covers that gap until the property is leased and ready for a long-term loan.
This example is illustrative and not a quote. In March, an investor buys a fourplex in the Malone area for $420,000. Two units are vacant and need updates. The bridge loan is $315,000, 75% of the price, with estimated interest-only payments of about $2,625 a month. The investor covers the updates from their own funds.
By August, all four units are leased at $1,050 each, or $4,200 a month. The property appraises at $470,000. A DSCR refinance at 75% LTV of $352,500 pays off the bridge. Estimated principal and interest is about $2,465, taxes are budgeted at $760 a month on the new value and insurance at $230, for a payment of about $3,455 and a DSCR of about 1.22x.
| Month | Step | Figure |
|---|---|---|
| March | Close bridge loan (75% of price) | $315,000 |
| March to July | Estimated monthly interest-only payment | $2,625 |
| July | Units leased for school year | $4,200 / month |
| August | Appraised value | $470,000 |
| August | DSCR refinance (75%) | $352,500 |
| After refinance | Total monthly payment | $3,455 |
| After refinance | DSCR | 1.22x |
The bridge loan does not care much about taxes, but the DSCR refinance does. Nebraska taxes property at or near full value, and the Lancaster County Assessor may revalue the building toward what you paid. Use the purchase price or expected appraisal times the full levy when you model the exit, not the seller's old bill, and keep some cushion above 1.0x.
If the refinance numbers are tight, you can plan a lower refinance amount and keep cash available to pay down the bridge, or look at sub-1.0 programs.
Insurance belongs in the same model. Spring hail season can change premiums and deductibles from one renewal to the next, so get a current quote for the refinance rather than relying on what the seller paid.
Some bridge programs need no appraisal and size the loan on price and an internal value review. Larger balances usually get a full valuation. Nebraska closings run through title companies, and a documentary stamp tax applies to deed transfers, customarily paid by the seller; confirm costs with your title company. Make sure insurance is bound with a wind and hail deductible you can live with, since spring is storm season.
A bridge loan fits when the property needs little work, or when timing is the main issue. If the building needs a real rehab, a fix and flip loan with a rehab holdback is usually the better tool, because it funds the work in draws. Our Lincoln fix and flip page covers that route for older homes.
Terms depend on the property, leverage, exit plan and experience.
Lincoln has many long-time landlords who own a handful of houses and small buildings near campus or downtown. When they retire, they often prefer to sell everything at once to one buyer who can close without delays. A bridge loan can finance several properties at once, giving you time to update units, raise rents to market and then refinance each property individually or together.
If the package includes five or more rentals, the exit can be a blanket portfolio loan with one closing and one payment instead of several separate DSCR loans. Plan that exit before you close, since each property's rent, taxes and insurance will be part of the combined cash flow.
Packages also tend to come with deferred maintenance and leases below market. Walk every unit, review every lease and budget the turnover cost before you agree on price.
Tell us the address, price, closing date, current occupancy and how you plan to exit. If the exit is a DSCR refinance, include the rents you expect and your tax estimate, and we will check the refinance math before you close.
Use the form below or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. See our Nebraska bridge loan page for statewide information.
In as little as 10 days with clear title, insurance and a complete file.
Rates start from 7.99% and depend on leverage, the property and your experience. Payments are interest-only.
Some bridge programs need no appraisal. Larger loans and some properties require a full valuation.
Yes. That is the most common exit, as in the fourplex example. The rent must clear the DSCR minimum on the new payment, including taxes.
Yes. Bridging between a purchase and a sale is a standard use.
Yes, on 1-8 unit properties. Be sure the occupancy matches the city's limits on unrelated occupants.
Yes. We make bridge loans in Omaha, Grand Island, Kearney and across Nebraska.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.